CATL’s 45% Global Battery Dominance Leaves US EV Industry Dependent On China

With nearly half the world’s electric vehicle batteries coming from one company, America’s EV industry is facing a growing problem. CATL, a Chinese battery maker, now controls 45.2% of global EV battery installations as of January 2026. That’s a massive chunk of the market, and it’s only getting bigger.

CATL installed 32.5 GWh of batteries in January 2026 alone. The company’s global power battery market share hit 39.2% in 2025, up from 38.0% the year before. It’s now ranked first worldwide for nine straight years, according to SNE Research. In 2025, CATL produced 464.7 GWh of batteries, a 35.7% jump from 2024.

Chinese companies as a group are even more dominant. Together, they held over 70% of the global EV battery market in 2025. That’s up from nearly 50% back in 2021. CATL leads the pack, followed by BYD at 16.4%. Other Chinese firms, including players such as CALB and Gotion High-Tech, reportedly hold additional shares.

Meanwhile, competitors outside China are losing ground. South Korean company LG Energy Solution dropped from 10.9% to 9.2% in 2025. Panasonic and SK On each held just 3.7%. South Korean firms have also struggled amid broader competitive pressures, which makes China’s dominance even harder to avoid.

CATL supplies major automakers, including Tesla, BMW, and Volkswagen. The company sold 661 GWh of lithium-ion batteries in 2025, a 39% increase from 2024. Its net profit surged 42% to 72.2 billion yuan for the year. Recent reports make no mention of confirmed CATL factories in the United States.

That’s a key concern for the US EV industry. American automakers rely heavily on batteries from abroad. With South Korean suppliers losing market share and Chinese companies tightening their grip, the US has fewer alternatives. An estimated 24 million vehicles globally run on CATL batteries, and its overseas market share has reportedly reached 30%. LG Energy Solution, one of the few non-Chinese alternatives, saw its net profit decrease by an estimated 76% in fiscal year 2025, according to reports, reflecting how difficult the competitive landscape has become.

The global EV battery market produced 1,187 GWh in 2025, up 31.7% from the year before. Global battery installations in 2024 roughly approached 170 GWh by some accounts, signaling that demand for energy storage continues to accelerate well beyond what non-Chinese manufacturers are currently equipped to meet. CATL’s growing dominance means the US may find it harder to reduce its dependence on Chinese-made batteries. In China’s domestic market, CATL’s production share surpassed 50% in Q1 2026, the first time it has crossed that threshold in five years.

✅ Claims in this article were verified using AI-assisted fact-checking.